Condo Residents Are Reassured Despite Court Foreclosure Fight

While the mortgage holder and the buyer of units in three luxury condominium complexes wage a multimillion-dollar foreclosure fight in the Dade and Broward County courts, residents in those apartments have nothing to worry about, according to the attorney representing the developers.

``The only difference is that the tenants may have to make their rent checks made payable to a different account,`` said Glen Rafkin, an attorney with Miami-based Young, Stern & Tannenbaum, the law firm representing three developers suing a New Jersey-based mortgage company. ``The building is going to be maintained. And there is no intention (by my client) to take any steps against any of the tenants to throw them out. They should not even know the legal proceeding is going on.``

The developers who initially sold luxury condominium apartments took back mortgages as partial payment for the units. The buyer stopped making payments in April at one project and in May and June at two other complexes. And the developers have filed a foreclosure suit to take possession again of the approximately $41 million in property.

The developers are Environ Associates, the mortgage holder of 39 units in Inverrary in Broward County, priced from $75,000 to $100,000 with a total value of about $5 million; Terraces Associates, mortgage holder on property valued at $24 million in 146 units at Turnberry Isle in North Miami Beach; and Hamptons Associates, mortgage holder of 75 units at Turnberry Isle in North Miami Beach valued at $12 million.

The three filed foreclosure suits in July against Consolidated Mortgage Co. of New Jersey and its lenders charging the firm had defaulted on note and mortgage payments in April.

``We, as the seller, took back mortgages as payment, and they are late in their payments,`` explained Harold Yassky, who with partner Larry Silverstein holds mortgages on the units in Inverrary and at Turnberry. ``It`s just like the bank making a car loan and when the guy doesn`t make the auto payments, the bank takes back the car. But we believe we are in the threshold of a settlement.``

Rafkin confirmed that two of the three suits, those involving the units at Environs at Inverrary in Lauderhill and at the Terraces at Turnberry, are on the verge of resolution.

``They (Consolidated) are going to pay under a slightly restructured manner,`` said Rafkin, ``All parties are hopeful there will be a resolution.``

The third case, filed by The Hamptons and involving 75 units, is still pending.

Consolidated officials were unavailable for comment Friday. But Dade County court papers filed by Consolidated dispute many of the charges in the lawsuit filed by The Hamptons on the grounds the developer ``failed to complete condominium units . . . failed to complete construction of the property . . . and failed to furnish financial records`` and other documents to The Hamptons West Condominium Association.

Rafkin denied those charges.

Most of the 39 apartments at Inverrary are rentals, according to Jerry Miller, spokesman for the Inverrary Association, whose membership includes all the condo and property owner associations in Inverrary.

``They`re all new buildings with new residents,`` Miller said.

Miller said he had not heard from any of the residents concerning the financial difficulties at Environ Towers, in the 7400 block of Radice Court.

The Environ Towers development is four buildings tucked among the golf courses, tennis courts and lush landscaping of the Inverrary development. A security guard regulates all traffic in and out of Environ Towers.

The apartments at stake are in Building Four.

According to Lauderhill building records, the certificate of occupancy for eight-story Building Four was issued 10 months ago.